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Strategic Decision Making

The marketing team has insisted that in order to position its products in the market place and maintain a leadership position in its products, it must first launch the refrigerated pasta and pizza in an effort to obtain the support of a more broad consumer base (http://www. quickmba. com/marketing/ries-trout/positioning/). These items would draw the attention of a more ethnic base, and capture the initial interest level of such consumers. These two product lines would become quickly recognized for their convenience and freshness levels.

Because neither refrigerated pizza nor pasta has a huge brand awareness as of yet, this is a great opportunity for Nestle to be the first one in the marketplace. It can use this opportunity to position itself as a leader in those brands. As a “first mover” it has an advantage over its competition, and it can maintain this lead by introducing new products and brands as it develops them. Overall, this marketing strategy would be quite successful of one for Nestle. Competition

Overall, the NRFC team trusts that the estimation of pizza sales should be based on Contadina pasta’s 24% market penetration rate. They are also limited barriers to entry that Nestle will face. In exhibit 1, you

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can see 3 possible penetration rates which reflect estimated potential results for those rates: 5% 15 % and 25%. In all three scenarios, the ‘kit only’ model is not expected to live up to the company’s financial result expectations. For the kit and topping concept the only penetration rate to reach up to the 15% launch decision could be considered in the company’s best interests. Company

As a corporate company enthused with integrating a strong corporate culture and reputation, Nestle has a set of core values that would make any corporate proud. They believe that their people should come from diverse backgrounds and this makes them a vital asset to the organization. Their people work well in teams and receive rewards for acting responsibly and helping the competitive advantage of the company. Furthermore their people are used to taking risks which are calculated to bring the company better success in the industry and this allows the people to be creative and innovative in producing products.

Another principle found in Nestle’s core value list is the idea of quality. Via quality, they offer dedicated and continuous improvement to food safety and the quality of the products being made. Each activity occurring at the company is guided by having the integrity to maintain quality at all levels. This quality also ties into another principle that Nestle upholds: brands. Nestle emphatically insists that their brands remain strong in the face of continuous change, growth, and increasing profitability levels.

It’s current products include dairy, confectionery, petcare, bottled water, ice cream, and infant nutrition. (http://www. enterprise-ireland. com/NR/exeres/C182CD20-86DE-429C-8D95-AB2F2C31ECF3. htm) As each Nestle employee must uphold brand quality, each Nestle employee must also remain aware that consumers drive the industry and that they need to be understood and their needs must be met. Nestle understands that customers play a critical role in getting their innovative brands and products to the consumer so they must work together to reach their mutual goals.

This respect and awareness makes Nestle as a company successful. Lastly, the idea of performance is one of their core values. Through performance Nestle can exceed its goals of total company high performance targets, organic growth, and EBITA. We can see that these business objectives and goals allow Nestle to continue to deliver food items to the consumer in a realistic manner and with quality in mind. This allows the company to sustain its success and provide nutrition foods. Customer

One of the company’s core values, Nestle is aware that its marketing strategies play a vital role in anticipating and understanding what it’s customers expect. They comprehend that they need to understand what the target customer wants, needs, and is motivated by. Such marketing strategies include knowing which ads are successful, what geographic area expects which products, which age group would be enticed by certain products, which ethnic populations might be most interested in a particular product, and which items would sell the best where.

They need to know their customers as real people which expect realistic, quality oriented, and price-friendly products. Knowing your customer is critical to in marketing since having a strong understanding of buyer behavior will assist the company in its awareness of what is important for the customers (http://www. nestleusa. com/PubAbout/NestleAtGlance. aspx. According to Porter’s Five Forces, the threat of substitutes is something that Nestle needs to know that its customers will be also selling (http://www. quickmba. com/strategy/porter. shtml) .

Its customers would be grocery chains which can also purchase competing brand pizzas, and consumers might feel better purchasing a substitute because of a cheaper price. If Nestle could offer the product with a discount to the customer, perhaps the customer could entice the consumer to make that particular product purchase. The customer could offer samples of the pizzas which might make the consumer lean towards purchasing that item. Also discount clippings from the local paper might get more consumer following.

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